Server collation change calls for re-installation.Instead change DB collation as
ALTER DATABASE MyDatabase COLLATE
Watch out if you use temporary tables a lot and do joins to your databases.. temp tables are created in tempdb which always has the server default collation so if you are joining temp tables to your db tables you can get collation conflicts.. i.e. the server default does matter sometimes .
You may want to check out this link to change the collation.
You can change the collation for a database or column level in SQL 2000 by using alter statements. You do not need to rebuild the master database.
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